Distressed debt opportunities come in many forms including companies with poor capital structures, declining profitability or debt maturity. The current economic landscape opens several distressed debt investment opportunities for investors as businesses face cash flow constraints and are forced to enter creditor protection. Despite high dry powder reserves, financial buyers have been hesitant to deploy capital over the last few years due to expensive multiples and low return on investment. While distressed debt opportunities can generate attractive returns, Canada has seen little activity in this niche, primarily due to the perceived risk associated with such companies.